Analysis of Short Selling

Based on the Luckin Coffee Scandals

DOI

10.2991/aebmr.k.220307.333How to use a DOI?

Keywords

financial fraud; short-selling process; Luckin coffee; The Muddy Water Research

Abstract

Luckin Coffee is a high-profile coffee corporation known by individuals due to its aggressive expansion and the sign of replacing the Starbucks in China. However, only 9 months after its IPO on NASDAQ, Luckin was accused of financial problems and huge flaws in its business model. Based on this scandal, through analysing the whole issue and some relative information, the key point of a successful short selling and the role that short selling plays in the capital market are considered. The result comes up that a clear evidence of the financial fraud or possible flaws is the key point during the process. Also, the short trades can be positive in the market’s perspective.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Kangqi Ding
PY  - 2022
DA  - 2022/03/26
TI  - Analysis of Short Selling
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2030
EP  - 2034
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.333
DO  - 10.2991/aebmr.k.220307.333
ID  - Ding2022
ER  -